The Company has also signed a power supply agreement with Hydro-Quebec’s distribution division for the supply of electricity to the Company’s Baie-Comeau, Quebec paper mill.

The other hydro power assets owned by AbitibiBowater, including a share of 162.5MW of capacity in Quebec, are unaffected by the transaction.

AbitibiBowater said the deal was consistent with the group’s recapitalisation plan to boost liquidity and financial flexibility.